UNITED STATES
                 SECURITIES AND EXCHANGE COMMISSION
                        Washington, DC 20549

                            FORM 10-K/A

    Mark One

       [X]     ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
               OF THE SECURITIES EXCHANGE ACT OF 1934

                 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2009

       [ ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
               OF THE SECURITIES EXCHANGE ACT OF 1934

                 For the transition period from         to

               Commission File Number: 001-14519

               Date of Report:    May 2, 2011

                          BALTIA AIR LINES, INC.
           (Exact name of Registrant as specified in its charter)

       NEW YORK                         11-2989648
      (State of Incorporation)     (IRS Employer Identification No.)

         63-25 SAUNDERS STREET, SUITE 7 I, REGO PARK, NY 11374
            (Address of principal executive offices)

Registrant's telephone number, including area code: (718) 275-5205


   Title of each class             Name of each Exchange
                                    on which registered

      -None-                            -None-

Securities Registered pursuant to Section 12(g) of the Exchange Act:

Common Stock, $.0001 Par Value
(Title of Class)

Indicate by check mark if the Registrant is a well-known seasoned
issuer, as defined in Rule 405 of the Securities Act.
   Yes [  ]      No  [X]

Indicate by check mark if the Registrant is not
required to file reports pursuant to Section 13 or 15(d) of the Act.

   Yes [  ]      No [X]


Indicate by check mark whether the Registrant (1) has filed all
reports to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such
reports) and (2) has been subject to such filing requirements for
the past 90 days.
Yes  [X]       No [  ]

Indicate by check mark if disclosure of delinquent filers pursuant
to Item 405 of Regulation S-K is not contained herein, and will not
be contained, to the best of the registrant's knowledge, in
definitive proxy or information statements incorporated by reference
in Part III of this Form 10-K or any amendment to this Form 10-K.


Indicate by check mark whether the Registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer or a smaller
reporting company. See definitions of "large accelerated filer,"
"accelerated filer" and "smaller reporting company" in Rule 12b-2 of
the Exchange Act. (Check one):

Large accelerated filer [ ]           Accelerated filer  [ ]

Non-accelerated filer   [ ]           Smaller reporting company  [X]

Indicate by check mark whether the Registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act of 1934).
      Yes [ ] No [X]

The aggregate market value of the voting common equity held by
non-affiliates as of June 30, 2009 is $10,981,131.

The number of shares of the registrant's common stock outstanding as
of April 12, 2010 was 840,190,706.

NOTE TO AMENDED FILING:  This amendment is made in accordance with
the Company's plan as outlined in its 8-K filing dated February
25, 2011, in particular to include the recently redone and
completed audit report and audited financial statements by the
Company's newly engaged independent certifying accountant. See
Part II, Items 8 and 9.



<PAGE>
TABLE OF CONTENTS

PART 1

Item 1.        Business
Item 1A.       Risk Factors
Item 1B.       Unresolved Staff Comments
Item 2.        Properties
Item 3.        Legal Proceedings
Item 4.        Submission of Matters to a Vote of Security Holders

PART II

Item 5.        Market for Registrant's Common Equity, Related Stockholder
               Matters and Issuer Purchases of Equity Securities
Item 6.        Selected Financial Information
Item 7.        Management's Discussion and Analysis of Financial Condition
               and Results of Operations
Item 7A.       Quantitative and Qualitative Disclosures About Market Risk
Item 8.        Financial Statement Supplementary Data
Item 9.        Changes in and Disagreements with Accountants on Accounting
               And Financial Disclosures
Item 9A(T)     Controls and Procedures
Item 9B        Other Information

PART III

Item 10.       Directors and Executive Officers of the Registrant
Item 11.       Executive Compensation
Item 12.       Security Ownership of Certain Beneficial Owners and
               Management and Related Stockholder Matters
Item 13.       Certain Relationships and Related Transactions
Item 14.       Principal Accountant Fees and Services

PART IV

Item 15.       Exhibits and Financial Statements

<PAGE>

PART I

Item 1. Business.

Baltia Air Lines, Inc. the "Company" or "Baltia" or "Baltia Air
Lines") is the only Part 121 (heavy jet operator) start-up airline
in the United States today that has received Government fitness
approval.  Baltia is currently conducting the FAA Air Carrier
Certification. Baltia Air Lines, Inc. is a New York State
corporation.

On December 19, 2008, the U.S. Department of Transportation (DOT)
issued its Order to Show Cause, finding that Baltia Air Lines is
fit, willing and able to engage in international air transport of
persons, property and mail.  Baltia was awarded the non-stop route
from JFK to St. Petersburg Russia. Baltia was also authorized for
worldwide charter services. Baltia had filed its application with
the DOT in October 2007.

On March 7, 2009, following the regulatory public comment period and
the Presidential Review, the DOT issued the Final Order, making its
findings of the Show Cause Order final.

On March 20, 2009, the DOT awarded Baltia Air Lines its initial
frequencies for flights from JFK to St. Petersburg

On March 25, 2009, the United States Government formally notified
the Government of the Russian Federation that Baltia Air Lines has
been designated for service on the JFK   St. Petersburg route.

In May 2009, IATA issued the two-letter Code.

In July the FAA arranged for arrival and departure times at JFK
Airport.

On August 18, 2009, the Pulkovo Airport Authority affirmed arrival
and departure times at Purlkovo Airport.

On August 18, 2009, the Company executed the Aircraft Purchase
Agreement for the purchase of its first Boeing 747 aircraft.

On November 15, 2009, the Company paid the remaining balance and it
now owns the aircraft. The aircraft was purchased without engines.
In conjunction with the purchase, the seller is leasing to the
Company engines on a power by the hour basis. Baltia will take
delivery of the aircraft and will register the ownership title with
the FAA in Oklahoma City. The aircraft is scheduled for maintenance
and interior upgrading.

In the first quarter of 2010, we entered into an engine leasing
agreement with Logistic Air, Inc. The Engines have been delivered
and installed on the aircraft.

Baltia currently carries $250,000,000 aircraft liability insurance.

In the first quarter of 2010, Baltia entered into a line maintenance
agreement with Evergreen at JFK.

In the first quarter of 2010, Baltia leased its station facilities
from Pulkovo Airport, entered into a fueling agreement with SOVEX
(the exclusive fueling company at Pulkovo Airport), entered into
agreement with Pulkovo Caro facility and customs for cargo
processing, and entered into a ground servicing agreement with
Pulkovo Airport.

In April of 2010, we received additional space at JFK, Terminal 4.

With the DOT approval, the FAA is authorized to proceed and Baltia
is currently conducting the FAA Air Carrier Certification process
under Part 121.

Upon completion of the Air Carrier Certification, Baltia intends to
commence scheduled non-stop service from its Base of Operations at
Terminal 4, JFK Int'l Airport in New York to Pulkovo II Int'l
Airport of St. Petersburg.

Baltia Air Lines, Inc. was organized in the State of New York on
August 24, 1989.

Following the commencement of service on the JFK-St. Petersburg
route, Baltia's objective is to develop its route network to Russia,
Latvia, Ukraine, and Belarus.

Baltia Air Line's operations are based at Terminal 4, JFK.
We have made key operating arrangements at JFK and other service
arrangements are in the process of being made. Baltia staff is now
auditing air carrier manual system for SAI (Safety Attribute)
compliance prior to the manual submission to the FAA. Baltia's
personnel meet regulatory requirements and have recent certification
experience.

Baltia intends to provide full service, i.e. passenger, cargo and
mail, and will not be dependent upon one or a few major customers. Baltia
has two registered trademarks "BALTIA" and "VOYAGER CLASS" and five
trademarks are subject to registration.

There is currently no non-stop service from JFK to St. Petersburg.
Connecting service is provided mainly by foreign carriers. Finnair,
Lufthansa and SAS are the leading competitors in the US-Russia
market. KLM, British Airways, Air France, Austrian Airlines, and
Swissair also provide service. However, foreign carriers are
required to have intermediate stops at transit airports in their
respective countries (Helsinki, Frankfurt, Stockholm, Copenhagen,
etc.) because they are "third nation" airlines and as such cannot
fly directly between the US and Russia (only a US airline as well as
a reciprocating Russian airline is eligible to fly nonstop). Delta
and Aeroflot currently operate between JFK and Moscow. With the
exception of the JFK-Moscow route, there exists no non-stop
competitive air transportation service on the routes for which
Baltia can reapply.

Baltia's objective is to establish itself as the leading non-stop
carrier in the market niche over the North Atlantic with operations
that are profitable and growing over time. In order to accomplish
this objective, we intend to establish and maintain high quality
service standards which we believe will be competitive with the
European airlines currently providing connecting flights.  Baltia
does not expect to be in direct competition with deep discount
airlines, including several East European airlines and the offspring
of the former Soviet airline Aeroflot, which provide connecting
flights.

Baltia intends to provide First, Business, and Voyager Class
accommodations.  Baltia's passenger market strategy is tailored to
particular preferences of the various segments of its customer base,
with marketing attention particularly focused on American business
travelers with interests in Russia who require high quality,
non-stop service from the US to Russia.

Baltia's initial marketing strategy is based on existing agencies
specializing in the market, selected travel and business
publications, supplemented by direct mailings to corporate travel
planners, and individual American businesses that are currently
involved in Russia. Soon after the inauguration of flight service,
Baltia plans to implement its frequent flyer program. As the
marketing matures, Baltia plans to advertise to the general public
throughout the US, and in Russia.  Baltia also plans to sponsor
selected industry and trade events in the US and in St. Petersburg.

Baltia intends to provide customer service and reservations centers
in New York and in St. Petersburg, to list Baltia's schedules and
tariffs in the Official Airline Guide, and provide world-wide access
to reservations on Baltia's flights through a major Computer
Reservations and Ticketing System ("CRS").

The Company intends to activate its reservations service when the
DOT issues its order authorizing Baltia to sell tickets (expected to
be approximately 30 to 45 days before the inaugural flight).

Baltia has identified the following market segments in the
U.S.-Russia market: (i) Business Travelers, (ii) General Tourism,
(iii) Ethnic Travelers, (iv) Special Interest Groups, (v)
Professional Exchanges, and (vi) Government and Diplomatic Travel.

Baltia believes that the direct non-stop service to be offered by it
will be superior to the stop-over service currently offered by
foreign airlines.   A comparison between the two services with
respect to passenger convenience and cargo transport efficiency is
set forth below.

BALTIA - US flag, non-stop service:

With non-stop service, a passenger can fly from JFK to St.
Petersburg in about 8 hours in a Boeing B747 wide body airplane.
Cargo arrives containerized, palletized, and secure.

Foreign, stop-over journeys:

With stop-over service, it would take a passenger 10 to 18 hours to
fly through Helsinki, Copenhagen, Moscow, or Frankfurt on a foreign
carrier. In addition, passengers must change to narrow-body aircraft
at a layover airport. Cargo is "broken up" and manually loaded onto
narrow-body aircraft, or trucked from Helsinki.

Baltia plans to operate efficiently and provide consistent high
quality service to passengers and cargo shippers alike in order to
establish the Company as the preferred airline in the market in
comparison to its competitors. The Company also plans to use
targeted marketing of its service to maintain and grow its market
share.

Because of the increased reliability and comfort of a non-stop
flight, Baltia expects to capture a portion of the existing traffic.
 Further, US government traffic is required by law (Fly America Act)
to fly on a US Flag carrier when service is available.

With the Boeing 747 true wide-body aircraft Baltia intends to
provide cargo service from JFK to St. Petersburg, offering
containers, pallets, and block space arrangements. Baltia expects to
carry contract cargo for express shippers.  Baltia also plans to
market its own "Baltia Courier", "Baltia Express", and "Baltia
Priority" express service for letters and packages.  Baltia also
expects revenues from diplomatic mail and cargo, under the Fly
America Act.

Baltia has passenger service and ground service arrangements at JFK
and at Pulkovo II Airport in St. Petersburg. As a US carrier flying
into a foreign country, Baltia will be eligible to the same degree
of priority that a foreign carrier receives when arriving in the US.

Baltia intends to start the JFK-St. Petersburg service with one
round-trip flight per week, then increase the frequency to three
round trips, and then to five round trips. , within a four-month
period.

By starting with one roundtrip flight per week for the first four
weeks, Baltia not only accelerates and simplifies its FAA
Certification, but expects to save itself the additional time it
would incur to make needed improvements and corrections. Starting
with a light schedule, any inefficiencies of a given flight may be
corrected for the next flight.  Baltia management believes that in
the initial four weeks, the Company will attain high operating
efficiencies and service standards. These standards may be further
refined during the following two months when Baltia plans to
increases service to three round-trips per week. Following that,
Baltia plans to increase service to five round trips per week, and
then subsequently to daily round trip flights as additional aircraft
are brought into service.  The transitional schedule allows Baltia
to train additional pilots, flight attendants, and support staff
with a continuous training program. It also allows the Baltia
marketing program to take effect through its various segments.

During the past two years Baltia has also been preparing standards
for service. The care taken in establishing high standards has
implications beyond the launching of the JFK-St. Petersburg flight.
Baltia plans to build operating modules and apply that know-how to
develop new markets. Once established, Baltia plans to duplicate its
JFK-St. Petersburg standards on flights on other transatlantic
routes. By the end of year one, Baltia plans to introduce three
additional aircraft.

Additional revenues from charter flying. In conjunction with its
Part 121 air carrier certification ("Part 121"), (referring to a
Federal Aviation Regulations' number, is an industry acronym used to
describe a US airline operating heavy jet aircraft) for scheduled
service, Baltia intends to seek certification for world wide charter
service. Following certification, Baltia plans to utilize aircraft
time available between scheduled service, to earn additional
revenues from charters. We are also considering qualifying our
aircraft for military contracts.

In order to start revenue flight operations, the Company has to
complete FAA Air Carrier Certification. During the past two years
the Company has been preparing for air carrier certification. The
Company's staff has prior experience with the certification and is
familiar with the latest System Safety & Certification Process
procedures (CPD 8.0), and the Air Transportation Oversight System
(ATOS) requirements.

The Company will carry airline liability insurance as required for a
US airline by DOT regulation.

As of December 31, 2009, Baltia had nineteen full-time employees and
fifteen part-time employees. Baltia's staff includes professionals
who have extensive major US airline experience in aircraft
maintenance, airline operations, airline regulatory compliance,
reservation, info technology, passenger service, and administration.

Item 1A.  Risk Factors.

We are a smaller reporting company as defined by Rule 12b-2 of the
Securities Exchange Act of 1934 and are not required to provide the
information under this item.

Item 1B.  Unresolved Staff Comments.

We are a smaller reporting company as defined by Rule 12b-2 of the
Securities Exchange Act of 1934 and are not required to provide the
information under this item.

Item 2.  Properties.

The Company rents space for its headquarters at 63-25 Saunders
Street, Suite 7I, Rego Park, New York 11374, and leases operations
space at Concourse A, Terminal 4, JFK International Airport, at
monthly rents of $1,237 and $7,430, respectively.  The Company
believes its property is adequate to launch its services and the
Company expects to increase space within the first few months of
operations.

Item 3. Legal Proceedings.

None.

Item 4. Submission of Matters to a Vote of Security Holders Reserved.

None.


PART II.

Item 5. Market for Registrant's Common Equity, Related Stockholder
        Matters and Issuer Purchases of Equity Securities.

The following table sets forth the high and low sales prices,
as quoted by the OTCBB, for our common stock for each quarter during
our two most recent fiscal years ended December 31, 2008 and 2009.
These quotations reflect inter-dealers prices, without retail
mark-ups, mark-downs or commissions, and may not represent actual
transactions.


      Fiscal Quarter Ended         High         Low
--------------------------- --------------- ----------------
        March 31, 2008               .07          .05
         June 30, 2008               .04          .02
    September 30, 2008               .02          .02
     December 31, 2008               .05          .04
        March 31, 2009               .06          .03
         June 30, 2009               .04          .02
    September 30, 2009               .04          .02
     December 31, 2009               .11          .02

The Company currently estimates that there are approximately
1,000 holders of record of its common stock. Given its continuing
need to retain any earnings to fund its future operations and
desired growth, the Company has not declared or paid, nor does it
currently anticipate declaring or paying for the foreseeable future,
any dividends on the Company's common stock.

The Company currently has no equity compensation plans, no written
purchase, savings, option, bonus, appreciation, profit sharing,
thrift, incentive, pension or similar plan or written compensation
contracts.

Item 6.  Selected Financial Information.

We are a smaller reporting company as defined by Rule 12b-2 of the
Securities Exchange Act of 1934 and are not required to provide the
information under this item.

Item 7.  Management's Discussion and Analysis of Financial Condition
and Results of Operations.

The following discussion includes certain forward-looking statements
within the meaning of the safe harbor protections of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Statements that include
words such as "believe," "expect," "should," intend," "may,"
"anticipate," "likely," "contingent," "could," "may," or other
future-oriented statements, are forward-looking statements. Such
forward-looking statements include, but are not limited to,
statements regarding our business plans, strategies and objectives,
and, in particular, statements referring to our expectations
regarding our ability to continue as a going concern, generate
increased market awareness of, and demand for, our service, realize
profitability and positive cash flow, and timely obtain required
financing. These forward-looking statements involve risks and
uncertainties that could cause actual results to differ from
anticipated results. The forward-looking statements are based on our
current expectations and what we believe are reasonable assumptions
given our knowledge of the markets; however, our actual performance,
results and achievements could differ materially from those
expressed in, or implied by, these forward-looking statements.

Our fiscal year ends on December 31. References to a fiscal year
refer to the calendar year in which such fiscal year ends.

OVERVIEW

The Company was organized in the State of New York on August 24,
1989.  Its objective is to provide scheduled air transportation from
the U.S. to Russia, and former Soviet Union countries.

On December 19, 2008, the U.S. Department of Transportation (DOT)
issued its Order to Show Cause, finding that Baltia Air Lines is
fit, willing and able to engage in international air transport of
persons, property and mail.  Baltia was awarded the non-stop route
from JFK to St. Petersburg Russia. Baltia was also authorized for
worldwide charter services. Baltia had filed its application with
the DOT in October 2007.

On March 7, 2009, following the regulatory public comment period and
the Presidential Review, the DOT issued the Final Order, making its
findings of the Show Cause Order final.

On March 20, 2009 the DOT awarded Baltia Air Lines its initial
frequencies for flights from JFK to St. Petersburg

On March 25, 2009 the United States Government formally notified the
Government of the Russian Federation that Baltia Air Lines has been
designated.

With the DOT approval, the FAA is authorized to proceed and Baltia
is currently conducting the FAA Air Carrier Certification process.

Upon completion of the Air Carrier Certification, Baltia intends to
commence scheduled non-stop service from its Base of Operations at
Terminal 4, JFK Int'l Airport in New York to Pulkovo II Int'l
Airport of St. Petersburg.

Baltia intends to provide full service, i.e. passenger, cargo and
mail, and will not be dependent upon one or a few major customers.
Baltia has two registered trademarks "BALTIA" and "VOYAGER CLASS"
and five trademarks subject to registration.

The accompanying consolidated financial statements have been
prepared on a going concern basis, which contemplates the
realization of assets and the satisfaction of liabilities in the
normal course of business.  The Company has capital which
management believes is sufficient to start revenue operations on the
JFK-St. Petersburg route.  The Company's operational success may be
dependent upon its timely procuring significant external debt and/or
equity financing to fund its immediate and nearer-term operations,
and subsequently realizing operating cash flows from ticket sales
sufficient to sustain its longer-term operations and growth
initiatives.

PLAN OF OPERATION

We believe that we have sufficient capital to commence revenue
flight operations. During 2008 and into 2009 we continued to finance
our operations through the issuance of our common stock. Until
revenue operations begin, our monthly expenditures for
administrative and regulatory compliance can be controlled at about
$30,000-$50,000. Based on current reserves we have sufficient
capital to support our development stage operations through the end
of 2010.

In 2010 we plan to raise $2 to $4 mm in additional financing in
order to support revenue flight operations. Based on our prior
experience with certification and current preparations management
believes that the launch budget, previously reviewed by the DOT,
will be adequate to complete certification and to commence flight
service. Approximately $400,000 is budgeted for certification tasks,
and $250,000 for general and administrative expenses. At the time
flight service is inaugurated the Company plans to have
approximately 20 management and 45 staff personnel.

Management has considered the overall pipeline effect that enhances
the initial cash position of a startup carrier. It is the industry
practice for passengers to purchase tickets in advance of their
flights while many service vendors bill the carrier later.

In order that a new airline would not fly empty on day one,
approximately 30 days prior to the expected inaugural date the
Company anticipates DOT authority to seelzes sales of tickets and
cargo space. Such funds from advance sales, estimated at
approximately $3 mm for the Company, accumulate in an escrow
account, and are released upon the issuance of the air carrier
certificate.

There can be no assurance that additional financing will be
available on terms favorable to us or at all. If adequate funds are
not available or are not available on acceptable terms, we may not
be able to fund operations.

CRITICAL ACCOUNTING POLICIES

Our discussion and analysis of our financial condition and results
of operations are based upon our financial statements, which have been
prepared in accordance with accounting principles generally accepted
in the U.S. The preparation of our financial statements requires us
to make certain estimates, judgments and assumptions that affect
the reported amounts of assets and liabilities at the date of the consolidated
financial statements and the reported amounts of revenues and expenses during
the reporting period. Our estimates, judgments and assumptions are continually
re-evaluated based upon available information and experience. Because of the
use  of estimates inherent in the financial reporting process, actual results
could differ from those estimates. Areas in which significant judgment and
estimates are used include, but are not limited to valuation of long-lived
assets and deferred income taxes.

Valuation of Long-Lived Assets: We review the recoverability of our
long-lived assets, including buildings, equipment and intangible
assets, when events or changes in circumstances occur that indicate
that the carrying value of the asset may not be recoverable. The
assessment of possible impairment is based on our ability to recover
the carrying value of the asset from the expected future pre-tax
cash flows (undiscounted and without interest charges) of the
related operations. If these cash flows are less than the carrying
value of such asset, an impairment loss is recognized for the
difference between estimated fair value and carrying value. Our
primary measure of fair value is based on discounted cash flows. The
measurement of impairment requires management to make estimates of
these cash flows related to long-lived assets, as well as other fair
value determinations.

We amortize the costs of other intangibles (excluding goodwill) over
their estimated useful lives unless such lives are deemed
indefinite. Amortizable intangible assets are tested for impairment
based on undiscounted cash flows and, if impaired, written down to
fair value based on either discounted cash flows or appraised
values.  Intangible assets with indefinite lives are tested for
impairment, at least annually, and written down to fair value as
required.

The Company complies with FASB ASC Topic 718 "Compensation - Stock
Compensation," which establishes standards for the accounting for transactions
in which an entity exchanges its equity instruments for goods or services.  It
also addresses transactions in which an entity incurs liabilities in exchange
for goods or services that are based on the fair value of the entity's equity
instruments or that may be settled by the issuance of those equity
instruments. FASB ASC Topic 718 focuses primarily on accounting for
transactions in which an entity obtains employee services in share-based
payment transactions.  FASB ASC Topic 718 requires an entity to measure the
cost of employee services received in exchange for an award of equity
instruments based on the grant-date fair value of the award (with limited
exceptions).  That cost will be recognized over the period during which an
employee is required to provide service in exchange for the award the
requisite service period (usually the vesting period).  No compensation costs
are recognized for equity instruments for which employees do not render the
requisite service.  The grant-date fair value of employee share options and
similar instruments will be estimated using option-pricing models adjusted for
the unique characteristics of those instruments (unless observable market
prices for the same or similar instruments are available).  If an equity award
is modified after the grant date, incremental compensation cost will be
recognized in an amount equal to the excess of the fair value of the modified
award over the fair value of the original award immediately before the
modification.

Our primary type of share-based compensation consists of
stock options. We use the Black-Scholes option pricing model in
valuing options. The inputs for the valuation analysis of the
options include the market value of the Company's common stock, the
estimated volatility of the Company's common stock, the exercise
price of the warrants and the risk free interest rate.

                           Dividend      Expected     Expected
    Year Interest Rate      Yield        Volatility   Life in Years

    2008    4.4%             0.00%        150%-217%     3
    2009    4.4%             0.00%          200%        5

Income taxes: The Company accounts for income taxes in accordance with FASB
ASC Topic 740 "Income Taxes," which requires accounting for deferred income
taxes under the asset and liability method.  Deferred income tax asset and
liabilities are computed for difference between the financial statement and
tax bases of assets and liabilities that will result in taxable or deductible
amounts in the future based on the enacted tax laws and rates applicable to
the periods in which the differences are expected to affect taxable income.
Valuation allowances are established, when necessary, to reduce the deferred
income tax assets to the amount expected to be realized.

The determination of the Company's provision for income taxes requires
significant judgment, the use of estimates, and the interpretation and
application of complex tax laws.  Significant judgment is required in
assessing the timing and amounts of deductible and taxable items and the
probability of sustaining uncertain tax positions.  The benefits of uncertain
tax positions are recorded in the Company's financial statements only after
determining a more-likely-than-not probability that the uncertain tax
positions will withstand challenge, if any, from tax authorities.  When facts
and circumstances change, the Company reassesses these probabilities and
records any changes in the financial statements as appropriate.
In accordance with GAAP, the Company is required to determine whether a tax
position of the Company is more likely than not to be sustained upon
examination by the applicable taxing authority, including resolution of any
related appeals or litigation processes, based on the technical merits of the
position.  The tax benefit to be recognized is measured as the largest amount
of benefit that is greater than fifty percent likely of being realized upon
ultimate settlement.  De-recognition of a tax benefit previously recognized
could result in the Company recording a tax liability that would reduce
stockholders equity.  This policy also provides guidance on thresholds,
measurement, de-recognition, classification, interest and penalties,
accounting in interim periods, disclosure, and transition that is intended to
provide better financial statement comparability among different entities.
Management's conclusions regarding this policy may be subject to review and
adjustment at a later date based on factors including, but not limited to, on-
going analyses of and changes to tax laws, regulations and interpretations
thereof. Generally, the tax filings are no longer subject to income tax
examinations by major taxing authorities for years before 2007. Any potential
examinations may include questioning the timing and amount of deductions, the
nexus of income among various tax jurisdictions and compliance with U.S.
federal, state and local tax laws.  The Company's management does not expect
that the total amount of unrecognized tax benefits will materially change over
the next twelve months.


RESULTS OF OPERATIONS
We had no revenues during the fiscal years ended December 31, 2009
and 2008, because (1) we did not fly aircraft in passenger, charter, or
freight service, and (2) we could not sell tickets for those services.

Our general and administrative expenses increased by $7,867,324 to
$11,403,476 during fiscal year ended December 31, 2009 as compared
to an increase of $3,536,152 during the fiscal year ended December
31,2008. This increase is primarily attributable to the costs incurred in
connection with air carrier certification.

Primarily as a result of the foregoing, we incurred a net loss of
$12,172,463 during the fiscal year ended December 31, 2009 as
compared to a net loss of $3,744,173 during the fiscal year ended
December 31, 2008.

Our future ability to achieve profitability in any given future
fiscal period remains highly contingent upon us beginning flight
operations. Our ability to realize revenue from flight operations in
any given future fiscal period remains highly contingent upon us
obtaining significant equity infusions and/or long-term debt
financing sufficient to fund initial operations. Even if we were to
be successful in procuring such funding, there can be no assurance
that we will be successful in commencing revenue operations or, if
commenced, that such operations would be profitable.

LIQUIDITY AND CAPITAL RESOURCES

Since our inception, we have incurred substantial operating and net
losses, as well as negative operating cash flows. As of December 31,
2009, we had cash of $1,439,897 and our stockholders' equity was
$1,999,201. This reflects an increase from December 31, 2008 when
our cash was $724,240 and our stockholders' equity was $750,374.

Our operating activities utilized $2,381,149 in cash during the
fiscal year ended December 31, 2009, an increase of $1,075,812 from
the $1,305,337 in cash utilized during the fiscal year ended
December 31, 2008.

Our financing activities provided $3,701,900 and $27,083 in cash
during the fiscal year ended December 31, 2009 and 2008,
respectively.

We had no significant planned capital expenditures, budgeted or
otherwise, as of December 31, 2009.

Off-Balance Sheet Arrangements: We do not have any off-balance
sheet arrangements which have, or are reasonably likely to have,
an effect on our financial condition, financial statements,
revenues or expenses.

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk.

We are a smaller reporting company as defined by Rule 12b-2 of the
Securities Exchange Act of 1934 and are not required to provide the
information under this item.

Item 8.  Financial Statements and Supplementary Data.

None.  The full text of our financial statements as of December 31, 2009
and 2008 and for the fiscal years ended December 31, 2009, 2008 and 2007,
and for the period from August 29, 1989 (inception) to December 31, 2009
begins on page F-1 of the Annual Report on Form 10-K. This amended filing
reflects the fact that these financial statements have now been audited as
required, and the independent auditor, who also prepared the audit for
the year ended December 31, 2008, has included his report covering both
years 2008 and 2009 in Part IV Item 15 of this amended filing.

Item 9.  Changes in and Disagreements with Accountants on Accounting
         And Financial Disclosures

As previously disclosed in our 8-K filings, the Company has accepted
the resignation of prior accounting firms engaged to prepare the 2009
audit and re-engaged Mr. Patrick Rodgers as its independent auditor
to complete the 2009 audit for this filing. The Registrant has no
disagreements with any of the engaged accounting firms.

Item 9A(T). Controls and Procedures.

Evaluation of Disclosure Controls and Procedures.  As of the end of
the period covered by this report, we conducted an evaluation under
the supervision and with the participation of our chief executive
officer and chief financial officer of our disclosure controls and
procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the
Exchange Act). Based upon this evaluation, our chief executive
officer and chief financial officer concluded that our disclosure
controls and procedures are effective to ensure that information
required to be disclosed by us in the reports that we file or submit
under the Exchange Act is recorded, processed, summarized and
reported, within the time periods specified in the Commission's
rules and forms.

Management's Annual Report on Internal Control over Financial
Reporting. Our management is responsible for establishing and
maintaining adequate internal control over financial reporting (as
defined in Rule 13a-15(f) under the Exchange Act). Our internal
control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes of accounting principles generally accepted in the United
States.

Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Therefore, even
those systems determined to be effective can provide only reasonable
assurance of achieving their control objectives.

Our management evaluated the effectiveness of our internal control
over financial reporting as of December 31, 2009. In making this
assessment, our management used the COSO framework, an integrated
framework for the evaluation of internal controls issued by the
Committee of Sponsoring Organizations of the Treadway Commission.
Based on this evaluation, our management concluded that, as of
December 31, 2009, our internal control over financial reporting was
effective.

This annual report does not include an attestation report of our
registered public accounting firm regarding internal control over
financial reporting. Management's report was not subject to
attestation by our registered public accounting firm pursuant to
temporary rules of the SEC that permit the company to provide only
management's report in this annual report.

Changes in Internal Control Over Financial Reporting.   There was no
change in our internal controls or in other factors that could
affect these controls during our last fiscal quarter that has
materially affected, or is reasonably likely to materially affect,
our internal control over financial reporting. While existing
controls may be adequate at present, upon the commencement of flight
revenue service we intend to implement controls appropriate for
airline operations.

Item 9B.  Other Information.

None.


PART III

Item 10.  Directors and Executive Officers of the Registrant.

The following table summarizes certain information with respect
to the executive officers and directors of the board:

<TABLE>
<CAPTION>
Name                     Age   Position
<S>                     <C>   <S>
Igor Dmitrowsky . . . .  55    President, CEO, CFO, Chairman of the Board
Russell Thal . . . . .   75    Executive Vice President
Barry Clare . . . . . .  51    Vice President Finance
Walter Kaplinsky  . . .  72    Secretary, Director
Andris Rukmanis . . . .  48    Vice President Europe, Director
Vick Luis Bolanos ...    50    Director

</TABLE>

Our directors serve until the next annual meeting and until their
successors are elected and qualified. Our officers are appointed to
serve for one year until the meeting of the board of directors
following the annual meeting of stockholders and until their
successors have been elected and qualified. There is no family
relationships between any of our directors or officers.

Igor Dmitrowsky, President, Chief Executive Officer and CFO, founded
the Company and served as Chairman of the Board from its inception
in August 24, 1989 to date. Mr. Dmitrowsky, a US citizen, born in
Riga, Latvia, attended the State University of Latvia from 1972 to
1974 and Queens College from 1976 through 1979. In 1979, he founded
American Kefir Corporation, a dairy distribution company, which
completed a public offering in 1986, and from which he retired in 1987.
Mr. Dmitrowsky has financed aircraft and automotive projects, speaks
fluent Latvian and Russian, and has traveled extensively in the republics
of the former Soviet Union.  In 1990, he testified before the House
Aviation Subcommittee on the implementation of United States' aviation
authorities by US airlines.

Russell Thal, a US citizen, is the Company's Executive Vice
President. Mr. Thal joined the Company in 2000. From 1981 to 2000 he
was Chairman of Compuflight, Inc., an airline flight planning firm.
From 1980 to 1981 he was Director of Stations for New York Air.

Barry Clare, a US citizen, is the Company's Vice President of
Finance.  Mr. Clare joined the Company in 2006.  Mr. Clare has been
instrumental in helping finance the Company From 2001 to 2004 has
was Chief Operating Officer for Advance Plant Pharmaceuticals, Inc.
From 1995 to 1997 Mr. Clare served as vice president of
Intermediaries, Inc., an investment banking firm.

Walter Kaplinsky, a US citizen, has been with the Company since
1990.  Mr. Kaplinsky has been corporate secretary since 1993. In
1979, together with Mr. Dmitrowsky, Mr. Kaplinsky was one of the
co-founders of American Kefir Corporation, where from 1979
through 1982, Mr. Kaplinsky served as secretary and vice president.

Andris Rukmanis, a citizen of Latvia, is the Company's Vice
President in Europe.  Mr. Rukmanis joined the Company in 1989. In
Latvia, Mr. Rukmanis has worked as an attorney specializing in
business law.  From 1988 through 1989, he was Senior Legal Counsel
for the Town of Adazhi in Riga County, Latvia.  From 1989 to 1990,
he served as Deputy Mayor of Adazhi.

Vick Luis Bolanos, a US citizen, joined the Company's Board as a
Director in 2009. Mr. Bolanos is President of Eastern Construction &
Electric, Inc., since 1992.

Item 11.  Executive Compensation.

No compensation has been paid to our executive officers during the
fiscal years ended December 31, 2007. In fiscal year ended December
31, 2008 Igor Dmitrowsky received $133,400 in compensation. In
fiscal year ended December 31, 2009 Igor Dmitrowsky received
$123,395 in compensation.

During the fiscal year ended December 31, 2009, 150,000,000 options
were granted to Igor Dmitrowsky.

During the fiscal year ended December 31, 2009, 148,000,000 common
stock options were exercised by Igor Dmitrowsky.

EMPLOYMENT AGREEMENTS

The Company has no individual employment agreements in place with
any of its executive officers or employees.

Future Compensation of Executive Officers

The board of directors approves salaries for the Company's executive
officers as well as the Company's overall salary structure.  For
year one following the closing of financing sufficient to commence
flight operations, the rate of compensation for the Company's
executive officers is expected to be:(i) President $198,000,
Executive Vice President $130,000, Vice President Finance $120,000,
(ii) Vice President Marketing $110,000,and (iii) Vice President
Europe $90,000.  Board directors are not presently compensated and
shall receive no compensation prior to commencement of revenue
service.

Item 12.  Security Ownership of Certain Beneficial Owners and
          Management and Related Stockholder Matters.

As of April 12, 2010, there were 840,190,706 shares of common stock,
par value $0.0001 outstanding. The following table sets forth, as of
December 31, 2009, the ownership of the Company's Common Stock by
(i)each director and officers of the Company, (ii) all executive
officers and directors of the Company as a group, and (iii) all
other persons known to the Company to own more than 5% of the
Company's Common Stock.  Each person named in the table has or
shares voting and investment power with respect to all shares shown
as beneficially owned by such person.


                               Common Shares
                            Beneficially Owned    Percent of Total
Outstanding:

Directors and Officers

Igor Dmitrowsky . . . . . .        339,422,825            40.39%
63-26 Saunders St., Suite 7I
Rego Park, NY 11374

Russell Thal . . . . . . . .        11,150,000             1.32%
26 Ridge Drive
Port Washington, NY 11050

Barry Clare . . . . . . . .         71,200,000             8.47%
16 Birchwood Park Court
Jericho, NY 11753

Vick Luis Bolanos ......            72,000,000             8.57%
633 MONROE ST
RIVERSIDE, NJ 08075

Walter Kaplinsky  . . . . .          9,717,294             1.15%
2000 Quentin Rd.
Brooklyn, NY 11229

Andris Rukmanis . . . . . .          4,768,750             0.56%
Kundzinsala, 8 Linija 9.
Riga, Latvia LV-1005
                                   _____________        _________
Shares of all directors and        508,258,869            60.49%
executive officers as a
group (5 persons)


Item 13.  Certain Relationships and Related Transactions.

None.

Item 14.  Principal Accountant Fees and Services.

In 2009, the Company paid its independent accountant $7,000 for
services in providing an audit of the year 2008.  In 2008, the
Company paid its independent accountant $7,000 for services in
providing an audit of the year 2007. All other Company accounting
and tax preparations have been done in-house.

PART IV.

Item 15.  Exhibits and Financial Statements.

3.1 Certificate of Incorporation of Baltia Air Lines, Inc.
(incorporated by reference to Exhibit 3.1 to Form 10-KSB filed on
May 19, 2005)

3.2 Bylaws of Baltia Air Lines, Inc. (incorporated by reference to
Exhibit 3.2 to Form S-8 filed on December 19, 2001).

3.3  DOT "ORDER ISSUING FOREIGN CERTIFICATE", finding Baltia Air
Lines, Inc. fit, willing, and able to engage in foreign scheduled
air transportation of persons Property and Mail and awarding to
Baltia Air Lines, Inc. a Certificate of Public Convenience for the
New York   St. Petersburg route. (Docket DOT-OST-2007-0007), issued
on the 7th day of March 2009.

3.4  DOT NOTICE of US-Russia frequency allocation to Baltia Air
Lines (Docket DOT-OST-2009-0070), issued on March 20, 2009.

31.1 Certification by Chief Executive Officer and Chief Financial
Officer pursuant to Sarbanes-Oxley Section 302, provided herewith.

32.1 Certification by Chief Executive Officer and Chief Financial
Officer pursuant to 18 U.S. C. Section 1350, provided herewith.


Baltia Air Lines, Inc.
(A Development Stage Company)
Financial Statements
For the Years Ended December 31, 2009 and 2008

Table of Contents
                                                         Page(s)


Report of Independent Registered Accounting firm             F-1

Balance Sheets as of December 31, 2009 and 2008              F-2

Statement of Operations for the years ended
December 31, 2009 and 2008, and the period
August 29, 1989 (Inception) to December 31, 2009             F-3

Statement of Cash Flows for the years ended
December 31, 2009 and 2008, and the period
August 29, 1989 (Inception) to December 31, 2009             F-4

Statement of Stockholders' Equity for the years
ended December 31, 2009, 2008, and 2007                      F-5

Notes to Financial Statements                        F-6 to F-26

<PAGE>
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Years Ended December 31, 2009 and 2008

Board of Directors and Shareholders
Baltia Air Lines, Inc.
New York, NY

I have audited the accompanying balance sheets of Baltia Air Lines, Inc.
("the Company") as of December 31, 2009 and 2008 and the statements of
operations, stockholders' equity, and cash flows for the years then
ended.  These financial statements are the responsibility of the
Company's management.  My responsibility is to express an opinion on
these financial statements based on my audit.

I conducted my audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States).  Those standards require that I
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements.  I was not engaged to
perform an audit of its internal control over financial reporting.  My audits
included consideration of internal control over financial reporting as a basis
for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the
Company's internal control over financial reporting.  Accordingly, I express
no such opinion.  An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.  An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation.  I believe that my audits provide a reasonable basis
for my opinion.

In my opinion, these financial statements present fairly, in all
material respects, the financial position of Baltia Air Lines, Inc. as
of December 31, 2009 and 2008 and the results of its operations and its cash
flows for the years then ended in conformity with accounting principles
generally accepted in the United States.

The Company has incurred operating losses since inception.  Note 7 of
the financial statements address Management's Plan regarding the future
operations of the Company.

/s/ Patrick Rodgers, CPA, PA
Patrick Rodgers, CPA, PA
Altamonte Springs, Florida
April 28, 2011


PAGE F-1
<PAGE>
<TABLE>
<CAPTION>
                                Baltia Air Lines, Inc.

                                   BALANCE SHEETS
                           (A Development Stage Company)

                                                   December 31,
                                                      2009                        2008
                               ASSETS
<S>                                            <C>                     <C>
Current assets
  Cash                                          $  1,439,897            $         724,240

Property and equipment, net of
accumulated depreciation of $85,858
and $73,373 at  December 31, 2009
and 2008, respectively                               659,303                       41,134

Total assets                                    $  2,099,200            $         765,374

                  LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
  Accounts payable                                    100,000                      15,000
    Total current liabilities                         100,000                      15,000

Long-term debt                                          -                           -

Total liabilities                                     100,000                      15,000

Stockholders' equity

  Preferred stock, $0.01 par value;
   2,000,000 shares authorized, 66500
   issued and outstanding                       $         665            $            665

  Common stock, $.0001 par value; 950,000,000
   shares authorized, 743,580,039 and
   355,767,159 issued and outstanding at December
   31, 2009, and 2008 respectively              $       74,358           $         35,577
Additional paid-in capital                          32,102,590                 18,716,994
Deficit accumulated through development stage      (30,178,413)               (18,002,862)

Total stockholders' equity                           1,999,200                    750,374

Total liabilities and stockholders' equity      $    2,099,200          $         765,374

</TABLE>
The accompanying footnotes are an integral part of these financial statements.

PAGE F-2

<PAGE>

<TABLE>
<CAPTION>

                                    Baltia Air Lines, Inc.

                                  STATEMENTS OF OPERATIONS
                                (A Development Stage Company)

                                                Years Ended December 31,      Inception to
                                                  2009          2008           12/31/2009
<S>                                            <C>             <C>            <C>
Revenue                                         $        -      $         -    $         -

Costs and Expenses
General and administrative                        11,403,476        3,536,152     26,764,154
FAA certification costs                              756,386          217,383      1,228,878
Training                                                -                -           225,637
Depreciation                                          13,072            8,551        332,679
Other                                                   -                -           568,245
Interest                                                (471)         (17,912)     1,050,221

Total costs and expenses                          12,172,463        3,744,174     30,169,814

Net loss before income taxes                     (12,172,463)      (3,744,174)   (30,169,814)
provision for income taxes                             3,087            4,364          8,599

Deficit accumulated during
development stage                               $(12,175,550)     $(3,748,538)  $(30,178,413)

Net loss per weighted
  share, basic and fully
  diluted                                       $      (0.03)     $     (0.01)

Weighted average number of common
shares outstanding, basic and fully diluted      476,403,471       303,326,480
</TABLE>
The Accompanying footnotes are an integral part of these financial statements.

PAGE F-3

<PAGE>

<TABLE>
<CAPTION>
                                 Baltia Air Lines, Inc.

                    STATEMENTS OF CHANGES IN STOCKHOLDERS'  EQUITY
                              (A Development Stage Company)
                                                                                                      Deficit Accumulated
                                                                                        Additional    During
                                          Preferred Stock          Common Stock         Paid-In       Development
                                         Shares     Amount     Shares       Amount      Capital       Stage                 Total
<S>                                    <C>          <C>     <C>          <C>        <C>            <C>               <C>
Balance, December 21, 2005               66,500     665      67,298,009      6,730    9,293,365      ( 9,284,902)          5,858
  Exercise of warrants and options                           22,000,000      2,200        9,000                           11,200
  Shares issued and issuable for cash                        13,550,000      1,355       98,655                          100,010
  Shares issued for services                                 19,546,900      1,955      941,213                          943,168
  Options issued for services                                                           143,959                          143,959
  Net loss                                                                                            (1,208,680)     (1,208,680)

Balance, December 31, 2006               66,500     665     122,394,909     12,240   10,486,192      (10,493,582)          5,515
  Exercise of warrants and options                           58,000,000      5,800      239,700                          245,500
  Shares issued and issuable for cash                        60,670,637      6,067    2,450,438                        2,456,505
  Shares issued for services                                 38,384,988      3,838    3,021,429                        3,025,267
  Options issued for services                                                            35,768                           35,768
  Net loss                                                                                            (3,760,743)     (3,760,743)

Balance, December 31, 2007               66,500     665     279,450,534     27,945   16,233,527      (14,254,326)      2,007,812
  Exercise of warrants and options                           46,000,000      4,600                                         4,600
  Shares issued and issuable for cash                           816,625         82       46,368                           46,450
  Shares issued for services                                 29,500,000      2,950      673,000                          675,950
  Options issued for services                                                         1,764,099                        1,764,099
  Net loss                                                                                            (3,748,537)     (3,748,537)

Balance, December 31, 2008               66,500     665     355,767,159     35,577   18,716,994      (18,002,863)        750,374
  Exercise of warrants and options                           32,000,000      3,200                                         3,200
  Shares issued and issuable for cash                       154,034,244     15,403    3,686,497                        3,701,900
  Shares issued for services                                200,778,636     20,078    9,430,413                        9,450,491
  Options issued for services                                                           243,787                          243,787
  Stock issued to purchase airplane                           1,000,000        100       24,900                           25,000
  Net loss                                                                                           (12,175,550)    (12,175,550)

Balance, December 31, 2009               66,500  $  665     743,580,039  $  74,358   $ 32,102,590  $ (30,178,413)    $ 1,999,200

</TABLE>
The accompanying footnotes are an integral part of these financial
statements.

PAGE F-4
<PAGE>
<TABLE>
<CAPTION>
                                          Baltia Air Lines, Inc,

                                        STATEMENT OF CASH FLOWS
                                      (A Development Stage Company)

                                                                   Years Ended December 31,        Inception to
                                                                        2009        2008           12/31/2009
<S>                                                            <C>             <C>             <C>
Cash flows from operations
 Deficit accumulated during development stage                   $  (12,175,550) $  (3,748,538)  $   (30,178,413)

Adjustment to reconcile deficit accumulated
  during development stage to cash used in
  operating activities:
  Depreciation and amortization                                         11,923          8,551           331,530
  Expenses paid by issuance of common stock                          9,697,478      2,444,649        17,014,415
  Changes in operating assets and liabilities:
      Prepaid expenses                                                     -              -             400,301
      Accounts payable and accrued expenses                             85,000        (10,000)        3,251,481

     Net cash used by operating activities                          (2,381,149)    (1,305,338)       (9,180,686)

Cash flows from investing activities

Purchase of equipment                                                 (605,094)          -             (928,218)

  Net cash used by investing activities                               (605,094)          -             (928,218)

Cash flows from financing activities
  Proceeds from issuance of common stock                             3,701,900         46,450         11,104,283
  Proceeds from issuance of preferred stock                                -              -                2,753
  Loans from related parties                                               -              -            1,351,573
  Repayment of related party loans                                         -              -             (368,890)
  Principal payments on long-term debt                                     -          (19,367)           (40,817)
  Acquisition of treasury stock                                            -              -             (500,100)

  Net cash provided by financing activities                          3,701,900         27,083         11,548,802

  Net increase (decrease) in  cash                                     715,657     (1,278,255)         1,439,897
  Cash, beginning of period                                            724,240      2,002,494                -

  Cash, end of period                                           $    1,439,897  $     724,240    $     1,439,897

Supplemental cash flow disclosures:
  Cash paid during the year for interest                        $         (417)$       17,913

  Fair value of equity instruments issued as
  partial plane payment to acquire Boeing 747-200 airplane      $       25,000 $        -

The accompanying footnotes are an integral part of these financial statements.

</TABLE>

PAGE F-5
<PAGE>



BALTIA AIR LINES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009


1.	Organization and Operations
The Company was formed as a U.S. airline on August 24, 1989 in the
State of New York. Our objective is to provide scheduled air
transportation from the U.S. to Russia, the Baltic States and
Ukraine.  In 1991, the Department of Transportation (DOT) granted
the Company routes to provide non-stop passenger, cargo and mail
service from JFK to St. Petersburg and from JFK to Riga, with online
service to Minsk, Kiev and Tbilisi as well as back up service to
Moscow. We have two registered trademarks "BALTIA" and "VOYAGER
CLASS," and five trademarks subject to registration. Our activities
to date have been devoted principally to raising capital, obtaining
route authority and approval from the DOT and the FAA, training
crews, and conducting market research to develop the Company's
marketing strategy.

Regulatory Compliance
We intend to operate as a Part 121 carrier, a heavy jet operator.
As such, following certification we will be required to maintain our
air carrier standards as prescribed by DOT and FAA regulation and as
specified in the FAA approved Company manuals.  As part of its
regulatory compliance we will be required to submit periodic reports
of our operations to the DOT.

2.	Property and Equipment

A summary of property and equipment is as follows:
<TABLE>
<CAPTION>
                                          Estimated                December 31,
                                          Useful Life            2009              2008
<S>                                      <C>                <C>                <C>
Airplane                                   5-7 Years         $  590,524         $      -
Office equipment and other                 5-7 Years            154,637            115,067
Less accumulated depreciation                                   (85,858)           (73,934)

Net                                                          $  659,303         $   41,133

Current depreciation expense                                 $   11,923         $    8,551

</TABLE>
PAGE F-6
<PAGE>


BALTIA AIR LINES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009


3.	Summary of Significant Accounting Policies

Basis of Presentation:

The financial statements have been presented in a "development stage"
format. Since inception, our primary activities have been raising of
capital, obtaining financing and of obtaining route authority and
approval from the DOT and the FAA. We have not commenced our principal
revenue producing activities.

Use of Estimates

The preparation of financial statements in
conformity with generally accepted accounting principles requires
our management to make estimates and assumptions that affect
reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial
statement and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from the estimates.

Cash and Cash Equivalents

For financial statement presentation
purposes, we consider those short-term, highly liquid investments
with original maturities of three months or less to be cash or cash
equivalents.

Fair Value of Financial Instruments
The fair values of the Company's assets and liabilities that qualify as
financial instruments under FASB ASC Topic 825, "Financial Instruments,"
approximate their carrying amounts presented in the accompanying consolidated
statements of financial condition at December 31, 2009 and 2008.



PAGE F-7
<PAGE>

BALTIA AIR LINES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009


3.	Summary of Significant Accounting Policies (continued)

Valuation of Investments in Securities at Fair Value
Definition and Hierarchy: FASB ASC Topic 820 "Fair Value Measurements and
Disclosures" provides a framework for measuring fair value under generally
accepted accounting principles in the United States and requires expanded
disclosures regarding fair value measurements.  ASC 820 defines fair value as
the exchange price that would be received for an asset or paid to transfer a
liability (i.e., the "exit price") in an orderly transaction between market
participants at the measurement date.
In determining fair value, the Company uses various valuation approaches.  In
accordance with GAAP, a fair value hierarchy for inputs is used in measuring
fair value that maximizes the use of observable inputs and minimizes the use
of unobservable inputs by requiring that the most observable inputs be used
when available.  Observable inputs are those that market participants would
use in pricing the asset or liability based on market data obtained from
sources independent of the Company.  Unobservable inputs reflect the Company's
assumptions about the inputs market participants would use in pricing the
asset or liability developed based on the best information available in the
circumstances.  FASB ASC Topic 820 establishes a three-tiered fair value
hierarchy that prioritizes inputs to valuation techniques used in fair value
calculations, as follows:
Level 1 - Valuations based on unadjusted quoted prices in active markets
for identical assets or liabilities that the Company has the ability to
access.  Valuation adjustments and block discounts are not applied to Level
1 securities.  Since valuations are based on quoted prices that are readily
and regularly available in an active market, valuation of these securities
does not entail a significant degree of judgment.
Level 2 - Valuations based on quoted prices in markets that are not active
or for which all significant inputs are observable, either directly or
indirectly.
Level 3 - Valuations based on inputs that are unobservable and significant
to the overall fair value measurement.



F-8
<PAGE>

BALTIA AIR LINES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009


3.	Summary of Significant Accounting Policies (continued)
Valuation of Investments in Securities at Fair Value (continued)
The availability of valuation techniques and observable inputs can vary from
security to security and is affected by a wide variety of factors including,
the type of security, whether the security is new and not yet established in
the marketplace, and other characteristics particular to the transaction.  To
the extent that valuation is based on models or inputs that are less
observable or unobservable in the market, the determination of fair value
requires more judgment.  Those estimated values do not necessarily represent
the amounts that may be ultimately realized due to the occurrence of future
circumstances that cannot be reasonably determined.
Because of the inherent uncertainty of valuation, those estimated values may
be materially higher or lower than the values that would have been used had a
ready market for the securities existed. Accordingly, the degree of judgment
exercised by the Company in determining fair value is greatest for securities
categorized in Level 3. In certain cases, the inputs used to measure fair
value may fall into different levels of the fair value hierarchy. In
such cases, for disclosure purposes, the level in the fair value hierarchy
within which the fair value measurement in its entirety falls is determined
based on the lowest level input that is significant to the fair value
measurement.
Fair value is a market-based measure considered from the perspective of a
market participant rather than an entity-specific measure.  Therefore, even
when market assumptions are not readily available, the Company's own
assumptions are set to reflect those that market participants would use in
pricing the asset or liability at the measurement date.  The Company uses
prices and inputs that are current as of the measurement date, including
periods of market dislocation.  In periods of market dislocation, the
observability of prices and inputs may be reduced for many securities.  This
condition could cause a security to be reclassified to a lower level within
the fair value hierarchy.




F-9
<PAGE>

BALTIA AIR LINES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009


3.	Summary of Significant Accounting Policies (continued)

Measurement of Fair Value

The Company measures fair value as an exit price using the
procedures described below for all assets and liabilities measured
at fair value. When available, the Company uses unadjusted quoted
market prices to measure fair value and classify such items within
Level 1. If quoted market prices are not available, fair value is
based upon internally developed models that use, where possible,
current market-based or independently-sourced market parameters such
as interest rates and currency rates. Items valued using internally
generated models are classified according to the lowest level input
or value driver that is significant to the valuation. Thus, an item
may be classified in Level 3 even though there may be inputs that
are readily observable. If quoted market prices are not available,
the valuation model used generally depends on the specific asset or
liability being valued. The determination of fair value considers
various factors including interest rate yield curves and time value
underlying the financial instruments.

Property and Equipment

Property and equipment are recorded at cost.
Depreciation is computed using the straight-line method over the
estimated useful lives of the assets, generally 5-7 years.
Expenditures for renewals and betterments are capitalized.
Expenditures for minor items, repairs and maintenance are charged to
operations as incurred. Gain or loss upon sale or retirement due to
obsolescence is reflected in the operating results in the period the
event takes place.

Valuation of Long-Lived Assets

We review the recoverability of our long-lived assets, In accordance with
Financial Accounting Standard Board ("FASB") Accounting Standards Codification
("ASC") Topic 360 "Property, Plant, and Equipment," including buildings,
equipment and intangible assets, when events or changes in circumstances occur
that indicate that the carrying value of the asset may not be recoverable. The
assessment of possible impairment is based on our ability to recover the
carrying value of the asset from the expected future pre-tax cash flows
(undiscounted and without interest charges) of the related operations. If
these cash flows are less than the carrying



F-10
<PAGE>

BALTIA AIR LINES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009


3.	Summary of Significant Accounting Policies (continued)

Valuation of Long-Lived Assets (continued)

value of such asset, an impairment loss is recognized for the
difference between estimated fair value and carrying value. Our
primary measure of fair value is based on discounted cash flows. The
measurement of impairment requires management to make estimates of
these cash flows related to long-lived assets, as well as other fair
value determinations.

We amortize the costs of other intangibles (excluding goodwill) over
their estimated useful lives unless such lives are deemed
indefinite. Amortizable intangible assets are tested for impairment
based on undiscounted cash flows and, if impaired, written down to
fair value based on either discounted cash flows or appraised
values.  Intangible assets with indefinite lives are tested for
impairment, at least annually, and written down to fair value as
required.

Comprehensive Income
The Company complies with FASB ASC Topic 220, "Comprehensive Income," which
establishes rules for the reporting and display of comprehensive income (loss)
and its components.  FASB ASC Topic 220 requires the Company's change in the
minimum pension liabilities, unrealized gain or loss on securities, and
foreign currency translation adjustments to be included in other comprehensive
loss, and is reflected as a separate component of stockholders' equity.

Stock-Based Compensation Plans

The Company complies with FASB ASC Topic 718 "Compensation - Stock
Compensation," which establishes standards for the accounting for transactions
in which an entity exchanges its equity instruments for goods or services.  It
also addresses transactions in which an entity incurs liabilities in exchange
for goods or services that are based on the fair value of the entity's equity
instruments or that may be settled by the issuance of those equity
instruments. FASB ASC Topic 718 focuses primarily on accounting for
transactions in which an entity obtains employee services in share-based
payment transactions.  FASB ASC Topic 718 requires an entity to measure the
cost of employee services received in exchange for an award of equity
instruments based on the grant-date fair value of the award (with

F-11
<PAGE>

BALTIA AIR LINES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009


3.	Summary of Significant Accounting Policies (continued)

Stock-Based Compensation Plans (continued)

limited exceptions).  That cost will be recognized over the period during
which an employee is required to provide service in exchange for the award the
requisite service period (usually the vesting period).  No compensation costs
are recognized for equity instruments for which employees do not render the
requisite service.  The grant-date fair value of employee share options and
similar instruments will be estimated using option-pricing models adjusted for
the unique characteristics of those instruments (unless observable market
prices for the same or similar instruments are available).  If an equity award
is modified after the grant date, incremental compensation cost will be
recognized in an amount equal to the excess of the fair value of the modified
award over the fair value of the original award immediately before the
modification

We use the Black-Scholes option pricing model in valuing options. The inputs
for the valuation analysis of the options include the market value of the
Company's common stock, the estimated volatility of the Company's common
stock, the exercise price of the warrants and the risk free interest rate.


Accounting For Obligations And Instruments Potentially To Be Settled
In The Company's Own Stock, we account for obligations and
instruments potentially to be settled in the Company's stock in
accordance with FASB ASC Topic 815, "Derivatives and Hedging."
Topic 815 addresses the initial balance sheet classification and measurement
of contracts that are indexed to, and potentially settled in, the Company's
own stock.

Under ASC Topic 815 contracts are initially classified as equity or as either
assets or liabilities, in the following situations:

                                                 Expected
        Interest   Dividend      Expected        Life in
Year     Rate      Yield         Volatility      Years


2008       4.4%      0.00%       150%-217%        3
2009       4.4%      0.00%          200%          5


F-12

<PAGE>
BALTIA AIR LINES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009


3.	Summary of Significant Accounting Policies (continued)


Equity

Contracts that require physical settlement or net-share settlement; and
Contracts that give the company a choice of net-cash settlement or
settlement in its own shares (physical settlement or net-share
settlement), assuming that all the criteria for equity
classification has been met.

Assets or Liabilities

Contracts that require net-cash settlement (including a requirement
to net-cash settle the contract if an event occurs and if that event
is outside the control of the company); and Contracts that give the
counterparty a choice of net-cash settlement or settlement in shares (physical
settlement or net-share settlement).

All contracts are initially measured at fair value and subsequently
accounted for based on the current classification. Contracts
initially classified as equity do not recognize subsequent changes
in fair value as long as the contracts continue to be classified as
equity. For contracts classified as assets or liabilities, the
Company reports changes in fair value in earnings and discloses
these changes in the financial statements as long as the contracts
remain classified as assets or liabilities. If contracts classified
as assets or liabilities are ultimately settled in shares, any
previously reported gains or losses on those contracts continue to
be included in earnings. The classification of a contract is
reassessed at each balance sheet date.

In accordance with ASC Topic 815, "Derivatives and Hedging," a transaction
which includes a potential for net-cash settlement, including liquidated
damages, requires that derivative financial instruments, including warrants
and additional investment rights, initially be recorded at fair value as an
asset or liability and subsequent changes in fair value be reflected in the
statement of operations. The recorded
value of the liability for such derivatives can fluctuate
significantly based on fluctuations in the market value of the
underlying common stock of the issuer of the derivative instruments,
as well as in the volatility of the stock price during the term used
for observation and the remaining term.



F-13
<PAGE>

BALTIA AIR LINES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009


3.	Summary of Significant Accounting Policies (continued)

Assets or Liabilities (Continued)

Warrant Derivative Liabilities

We also account for warrants issued in connection with financing arrangements
in accordance with ASC Topic 815, "Derivatives and Hedging." Pursuant to ASC
Topic 815, an evaluation of specifically identified conditions is made to
determine whether the fair value of warrants issued is required to be
classified as a derivative liability. The fair value of warrants classified as
derivative liabilities is adjusted for changes in fair value at each reporting
period, and the corresponding non-cash gain or loss is recorded in current
period earnings.

Earnings per Common Share

Basic earnings per share is computed by
dividing income available to common shareholders (the numerator) by
the weighted-average number of common shares outstanding (the
denominator) for the period. Diluted earnings per share assume that
any dilutive convertible securities outstanding were converted, with
related preferred stock dividend requirements and outstanding common
shares adjusted accordingly. It also assumes that outstanding common
shares were increased by shares issuable upon exercise of those
stock options for which market price exceeds the exercise price,
less shares which could have been purchased by us with the related
proceeds. In periods of losses, diluted loss per share is computed
on the same basis as basic loss per share as the inclusion of any
other potential shares outstanding would be anti-dilutive.

Income Taxes
The Company accounts for income taxes in accordance with FASB ASC Topic 740
"Income Taxes," which requires accounting for deferred income taxes under the
asset and liability method.  Deferred income tax asset and liabilities are
computed for difference between the financial statement and tax bases of
assets and liabilities that will result in taxable or deductible amounts in
the future based on the enacted tax laws and rates applicable to the periods
in which the differences are expected to affect taxable income.  Valuation
allowances are established, when necessary, to reduce the deferred income tax
assets to the amount expected to be realized.

F-14

<PAGE>

BALTIA AIR LINES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009


3.	Summary of Significant Accounting Policies (continued)

Income Taxes (continued)
The determination of the Company's provision for income taxes requires
significant judgment, the use of estimates, and the interpretation and
application of complex tax laws.  Significant judgment is required in
assessing the timing and amounts of deductible and taxable items and the
probability of sustaining uncertain tax positions.  The benefits of uncertain
tax positions are recorded in the Company's financial statements only after
determining a more-likely-than-not probability that the uncertain tax
positions will withstand challenge, if any, from tax authorities.  When facts
and circumstances change, the Company reassesses these probabilities and
records any changes in the financial statements as appropriate.
In accordance with GAAP, the Company is required to determine whether a tax
position of the Company is more likely than not to be sustained upon
examination by the applicable taxing authority, including resolution of any
related appeals or litigation processes, based on the technical merits of the
position.  The tax benefit to be recognized is measured as the largest amount
of benefit that is greater than fifty percent likely of being realized upon
ultimate settlement.  De-recognition of a tax benefit previously recognized
could result in the Company recording a tax liability that would reduce
stockholders equity.  This policy also provides guidance on thresholds,
measurement, de-recognition, classification, interest and penalties,
accounting in interim periods, disclosure, and transition that is intended to
provide better financial statement comparability among different entities.
Management's conclusions regarding this policy may be subject to review and
adjustment at a later date based on factors including, but not limited to, on-
going analyses of and changes to tax laws, regulations and interpretations
thereof. Generally, the tax filings are no longer subject to income tax
examinations by major taxing authorities for years before 2007. Any potential
examinations may include questioning the timing and amount of deductions, the
nexus of income among various tax jurisdictions and compliance with U.S.
federal, state and local tax laws.  The Company's management does not expect
that the total amount of unrecognized tax benefits will materially change over
the next twelve months.

F-15
<PAGE>

BALTIA AIR LINES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009


3.	Summary of Significant Accounting Policies (continued)

Income Taxes (continued)
Interest and Penalty Recognition on Unrecognized Tax Benefits
The Company recognizes interest accrued related to unrecognized tax benefits
in interest expense and penalties in operating expenses. No interest expense
or penalties have been recognized as of and for the periods ended December 31,
2009 and 2008.
Our federal and state income tax returns are open for fiscal years
ending on or after December 31, 2006. We are not under examination
by any jurisdiction for any tax year. At December 31, 2009 we had no
material unrecognized tax benefits and no adjustments to liabilities
or operations were required under FASB ASC Topic 740, "Income Taxes."

Recent Accounting Pronouncements:

Recently Adopted Standards

On October 1, 2009, the Company adopted FASB ASC Topic 820-10 (ASC 820-10),
"Fair Value Measurements and Disclosures," for nonfinancial assets and
liabilities that are not recognized or disclosed at fair value in the
financial statements on a recurring basis. The adoption of ASC 820-10 did not
have a material impact on the Company's financial statements.
In August 2009, the FASB issued Accounting Standards Update 2009-05 (ASU 2009-
05), "Fair Value Measurements and Disclosures (Topic 820) - Measuring
Liabilities at Fair Value," to amend FASB ASC Topic 820, "Fair Value
Measurements and Disclosures," to provide guidance on the measurement of
liabilities at fair value.  The guidance provides clarification that in
circumstances in which a quoted market price in an active market for an
identical liability is not available, an entity is required to measure fair
value using a valuation technique that uses the quoted price of an identical
liability when traded as an asset or, if unavailable, quoted prices for
similar liabilities or similar assets when traded as assets.  If none of this
information is available, an entity should use a valuation technique in
accordance with existing fair valuation principles.  The Company adopted the
guidance in 2009, and there was no material impact on the Company's
consolidated financial statements or related footnotes.

F-16
<PAGE>

BALTIA AIR LINES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009


3.	Summary of Significant Accounting Policies (continued)

Recently Adopted Standards (continued)

In June 2009, the FASB issued the FASB Accounting Standards Codification (the
"Codification") and a new Hierarchy of Generally Accepted Accounting
Principles which establishes only two levels of GAAP: authoritative and
nonauthoritative. The Codification is now the source of authoritative U.S.
GAAP recognized by the FASB to be applied by nongovernmental entities in the
preparation of financial statements in conformity with GAAP, except for rules
and interpretive releases of the SEC, which are additional sources of
authoritative GAAP for SEC registrants. All other nongrandfathered, non-SEC
accounting literature not included in the Codification will become
nonauthoritative. The Codification is effective for financial statements for
interim or annual reporting periods ending after September 15, 2009. The
Company adopted the new guidelines and numbering system prescribed by the
Codification when referring to GAAP in the third quarter of 2009. The
application of the Codification did not have an impact on the Company's
financial statements; however, all references to authoritative accounting
literature will now be references in accordance with the Codification.
In May 2009, the FASB issued authoritative guidance for subsequent events, now
codified as FASB ASC Topic 855, "Subsequent Events," which establishes general
standards of accounting for and disclosures of events that occur after the
balance sheet date but before the financial statements are issued or are
available to be issued.  The guidance sets forth the circumstances under which
an entity should recognize events or transactions occurring after the balance
sheet date in its financial statements.  The guidance also requires the
disclosure of the date through which an entity has evaluated subsequent events
and whether this date represents the date the financial statements were issued
or were available to be issued.  The Company adopted this guidance in 2009
with no significant impact on the Company's financial statements or related
footnotes.
In April 2009, the FASB provided additional guidance for estimating fair value
in accordance with FASB ASC Topic 820, "Fair Value Measurements and
Disclosures," when the volume and level of activity for the asset or liability
have significantly decreased.  This additional guidance re-emphasizes that
regardless of market conditions the fair value measurement

F-17
<PAGE>

BALTIA AIR LINES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009


3.	Summary of Significant Accounting Policies (continued)

Recently Adopted Standards (continued)

is an exit price concept and clarifies and includes additional factors to
consider in determining whether there has been a significant decrease in
market activity for an asset or liability. This guidance also provides
additional clarification on estimating fair value when the market activity for
an asset or liability has declined significantly.  The scope of this guidance
does not include assets and liabilities measured under quoted prices in active
markets.  This guidance is applied prospectively to all fair value
measurements where appropriate and will be effective for interim and annual
periods ending after June 15, 2009.  The adoption of the provisions of this
guidance did not have any material impact on the Company's financial
statements.
In April 2009, FASB issued FSP FAS 107-1 and APB 28-1, now codified in FASB
ASC Topic 825-10-65, "Interim Disclosures about Fair Value of Financial
Instruments," which amends U.S. GAAP to require entities to disclose the fair
value of financial instruments in all interim financial statements.  The
additional requirements of this guidance also require disclosure of the
method(s) and significant assumptions used to estimate the fair value of those
financial instruments.  Previously, these disclosures were required only in
annual financial statements.  The additional requirements of this guidance are
effective for interim reporting periods ending after June 15, 2009.  The
adoption of the additional requirements did not have any financial impact on
the Company's financial statements.
In April, 2009, the FASB issued ASC Topic 320-10 (ASC 320-10), "Recognition
and Presentation of Other-Than-Temporary Impairments," which provides
additional guidance designed to create greater clarity and consistency in
accounting for and presenting impairment losses on securities. ASC Topic 320-
10 provides greater clarity to investors about the credit and noncredit
components of impaired debt securities that are not expected to be sold. The
measure of impairment in comprehensive income remains fair value. This
statement also requires more timely disclosures


F-18
<PAGE>

BALTIA AIR LINES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009


3.	Summary of Significant Accounting Policies (continued)

Recently Adopted Standards (continued)
and an increase in disclosures regarding expected cash flows, credit losses,
and an aging of securities with unrealized losses. We adopted these statements
April 1, 2009 without material effect on our  financial statements.
On January 1, 2009, the Company adopted FASB ASC Topic 805 (ASC 805),
"Business Combinations," which generally requires an acquirer to recognize the
identifiable assets acquired, liabilities assumed, contingent purchase
consideration and any noncontrolling interest in the acquiree at fair value on
the date of acquisition. It also requires an acquirer to recognize as expense
most transaction and restructuring costs as incurred, rather than include such
items in the cost of the acquired entity. For the Company, ASC 805 applies
prospectively to business combinations for which the acquisition date is on or
after October 1, 2009. The adoption of ASC 805 did not have a material impact
on the Company's financial statements.
Recently Issued Accounting Pronouncements
In December 2010, FASB issued ASC ASU 2010-28, "When to Perform Step 2 of the
Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying
Amounts (Topic 350) - Intangibles - Goodwill and Other." ASU 2010-28 amends
the criteria for performing Step 2 of the goodwill impairment test for
reporting units with zero or negative carrying amounts and requires performing
Step 2, if qualitative factors indicate that it is more likely than not that
goodwill impairment exists. The amendments to this Update are effective for
the Company in the first quarter of 2011. Any impairment to be recorded upon
adoption will be recognized as an adjustment to our beginning retained
earnings. The pending adoption of ASU 2010-28 is not expected to have any
financial impact on the on our financial statements.
In January 2010, the FASB issued Accounting Standards Update 2010-06, "Fair
Value Measurements and Disclosures (Topic 820) - Improving Disclosures about
Fair Value Measurements" (ASU 2010-06), to require new disclosures related to
transfers into and out of Levels 1 and 2 of the fair value hierarchy and
additional disclosure requirements related to

F-19
<PAGE>

BALTIA AIR LINES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009


3.	Summary of Significant Accounting Policies (continued)

Recently Issued Accounting Pronouncements (continued)
Level 3 measurements.  The guidance also clarifies existing fair value
measurement disclosures about the level of disaggregation and about inputs and
valuation techniques used to measure fair value.  The additional disclosure
requirements are effective for the first reporting period beginning after
December 15, 2009, except for the additional disclosure requirements related
to Level 3 measurements, which are effective for fiscal years beginning after
December 15, 2010.  The adoption of the additional requirements is not
expected to have any financial impact on the Company's financial statements.
In February 2010, the FASB issued an amendment which requires that an SEC
filer, as defined, evaluate subsequent events through the date that the
financial statements are issued. The update also removed the requirement for
an SEC filer to disclose the date through which subsequent events have been
evaluated. The adoption of the additional requirements is not expected to have
any financial impact on the Company's financial statements.
In December 2009, the FASB issued ASU No. 2009-17, Consolidations (Topic 810)-
Improvements to Financial Reporting By Enterprises Involved with Variable
Interest Entities (ASU No. 2009-17). ASU No. 2009-17 requires a qualitative
approach for determining the primary beneficiary of a variable interest entity
and replaces the quantitative evaluation previously set forth under FASB
Interpretation No. 46 (revised December 2003), Consolidation of Variable
Interest Entities . This approach is focused on identifying the reporting
entity that has the ability to direct the activities of a variable interest
entity that most significantly affects the entity's economic performance and
has the obligation to absorb the entity's losses or has the right to receive
benefits from the entity. ASU No. 2009-17, among other things, will require
enhanced disclosures about a reporting entity's involvement in variable
interest entities.  The adoption of the additional requirements is not
expected to have any financial impact on the Company's financial statements.


F-20
<PAGE>

BALTIA AIR LINES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009


4.	Stockholders' Equity

Description of Securities

Common Stock

We have been authorized 950,000,000 shares of Common Stock at $.0001 par value
per share. As of December 31, 2009, a total of 743,580,039 shares of Common
Stock were issued and outstanding and held by over 500 shareholders. In
addition, we have granted options and warrants to issue up to approximately
133,800,000 more shares of our common stock. Holders of Common Stock are
entitled to receive dividends, when and if declared by the board of directors,
subject to prior rights of holders of any Preferred Stock then outstanding and
to share ratably in the net assets of the company upon liquidation.  Holders
of Common Stock do not have preemptive or other rights to subscribe for
additional shares. The Certificate of Incorporation does not provide for
cumulative voting. Shares of Common Stock have equal voting, dividend,
liquidation and other rights, and have no preference, exchange or appraisal
rights.

Preferred Stock

We are authorized to issue up to a maximum of 2 million shares (66,500 shares
outstanding) of Preferred Stock.  We can issue these shares as our board of
directors shall from time to time fix by resolution. Our Preferred Stock is
not entitled to share in any dividends declared on the Common Stock and has no
voting rights. Each share is convertible in to 3 shares of Common. The
liquidation preference is set by this conversion formula and results in a pro
rata claim on the Company's assets based upon the underlying common shares
issuable (199,500) upon conversion.

Recent Issuance of Unregistered Securities during the year ended December 31,
2009:

Stock Issued for Cash

We issued 154,034,244 shares of our common stock in exchange for
receiving a total of $3,701,900 in cash net of offering expenses of
$576,000.  The shares are not registered and subject to restrictions
as to transferability.







F-21
<PAGE>

BALTIA AIR LINES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009


4.	Stockholders' Equity (continued)

Recent Issuance of Unregistered Securities during the year ended December 31,
2009: (continued)

Stock Issued for Services

We issued 200,738,636 shares of our common stock in exchange for
services.  The shares were valued at $9,450,000 or about $0.047 per
share which reflected the weighted average market value at the time
of issuance. 116,000,000 of the shares valued at approximately $5.4
million were issued to Igor Dmitrowsky our president. We also issued
1,000,000 shares valued at $25,000 as a component of the total
consideration paid to acquire a Boeing 747 airplane. All such shares
are not registered and are subject to restrictions as to
transferability.

Stock Issued Due to Exercise of Warrants & Options during the year ended
December 31, 2009:


During 2009, Mr. Dmitrowsky exercised 32,000,000 warrants to acquire
a like amount of shares of Common Stock. The options were exercised
at the $0.0001 strike price. The exercise price was offset against
accrued compensation of $3,200.

Stock Issued for Cash during the year ended December 31, 2008:

We issued 816,625 shares of our common stock in exchange for
receiving a total of $46,450 in cash.  The shares are not registered
and subject to restrictions as to transferability.

Stock Issued for Services during the year ended December 31, 2008:

We issued 29,500,000 shares of our common stock in exchange for
services.  The shares were valued at $675,950 or about $0.02 per
share which reflected the weighted average market value at the time
of issuance. The shares are not registered and are subject to
restrictions as to transferability.








F-22
<PAGE>

BALTIA AIR LINES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009


4.	Stockholders' Equity (continued)


tock Issued Due to Exercise of Warrants & Options during the year ended
December 31, 2009:

During 2009, holders of 32,000,000 warrants exercised their option
to acquire a like amount of shares of Common Stock. The options were
at $0.0001 exercise prices. The exercise price was offset against
accrued compensation of $4,600.

Summary of Option Activity

The following table provides summary information on options issued
by our company in unapproved equity compensation plans; the warrants
exercised to date; the warrants that are presently exercisable and
the current exercise prices of such warrants.





F-23
<PAGE>


BALTIA AIR LINES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009


All Plan & Non-Plan Compensatory Type Options

<TABLE>
<CAPTION>

                                                                Weighted
                                                Weighted        Average
                                                Average         Remaining       Aggregate
                                                Exercise        Contractual     Intrinsic
                                      Shares    Price           Term (Years)    Value   <FN1>
<S>                           <C>             <C>              <C>          <C>
Options outstanding at
   December 31, 2007              61,770,000   $   0.04
Granted                           91,562,500   $   0.10
Exercised                        (46,000,000)  $
Lapsed                            (1,840,000)  $
Options outstanding at
   December 31, 2008             105,492,500   $   0.02              3.9         2,000,000
Granted                            2,776,818   $   0.02
Exercised                        (32,000,000)  $    -
Lapsed                            (3,290,000)  $    -
                                  72,979,318   $    -

Options outstanding at
December 31, 2009                 28,979,318   $   0.04              2.7     $   1,727,949

Options exercisable at
December 31, 2009                 28,979,318   $   0.04              2.7     $   1,727,949

</TABLE>
<FN>
<FN1>     Amount by which the fair value of the stock at the balance
sheet date exceeds the exercise price.
</FN>





F-24
<PAGE>

BALTIA AIR LINES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009


4.	Stockholders' Equity (continued)

<TABLE>
<CAPTION>

                                               Options Outstanding               Options Exercisable
                                                                  Weighted
                                                     Weighted     Average                         Weighted
                                                     Average      Remaining                       Average
Range of                                             Exercise     Life in                         Exercise
Exercise Prices                   Shares             Price        Months           Shares          Price
<S>                          <C>                     <C>         <C>           <C>              <C>
 $0.01  -        $0.05           22,972,500             $0.02        25.3           22,972,500        $0.02
 $0.06  -        $0.25           6,006,818              $0.12        57.5            6,006,818        $0.12
                                 ___________                                        ___________
                                 28,979,318                                         28,979,318

</TABLE>

5.	 Income Taxes
The Company has approximately $ 9.6 million in available net
operating loss carryovers available to reduce future income taxes.
These carryovers expire at various dates through the year 2030. The
Company has adopted FASB ASC Topic 740, "Accounting for Income Taxes," which
provides for the recognition of a deferred tax asset based upon the value the
loss carry-forwards will have to reduce future income taxes and management's
estimate of the probability of the realization of these tax benefits. We have
determined it more likely than not that these timing differences will not
materialize and have provided a valuation allowance against our entire net
deferred tax asset of approximately $3.8 million.

Utilization of federal and state NOL and tax credit carry-forwards
may be subject to a substantial annual limitation due to the
ownership change limitations provided by the Internal Revenue Code
of 1986, as amended, and similar state provisions. The annual
limitation may result in the expiration of NOL and tax credit
carry-forwards before full utilization.

6.	 Commitments and Contingencies

Facilities: The Company leases office space for its administrative
offices, under three month to month agreements, at a combined
monthly rental of approximately $9,500. In 2009 and 2008 expense was
$131,895 and $76,405 respectively.




F-25
<PAGE>




7.	 Management's Plan of Operation
We believe we currently have sufficient capital to commence revenue
flight operations and to maintain our current level of operations.
During 2009 and into 2010, we continued to finance our operations
through the issuance of our common stock and the continued exercise
of warrants. Until revenue operations begin, our monthly
expenditures for administrative and regulatory compliance can be
controlled at about $180,000-$200,000. Based on current reserves we
have sufficient capital to support our development stage operations
through the most of 2010.

In 2009, we raised $3.9 million in a private placement in order to start
revenue flight operations.  Based on our prior experience with
certification and current preparations the management believes that
the launch budget, previously reviewed by the DOT, will be adequate
to complete certification and to commence flight service.
Approximately $300,000 is budgeted for aircraft, $450,000 for
certification tasks, and $300,000 for general and administrative
expenses. At the time flight service is inaugurated the company
plans to have approximately 15 management and 45 staff personnel.

Management has considered the overall pipeline effect that enhances
the initial cash position of a startup carrier. It is the industry
practice for passengers to purchase tickets in advance of their
flights while service vendors bill the carrier later.

In order that a new airline would not fly empty on day one,
approximately 30 days prior to the expected inaugural date, the DOT
authorizes sales of tickets and cargo. Such funds from advance
sales, estimated at approximately $3 mm for the company, accumulate
in an escrow account, and are released upon the issuance of the air
carrier certificate.

There can be no assurance that additional financing will be
available on terms favorable to us or at all.  If adequate funds are
not available or are not available on acceptable terms, we may not
be able to fund expansion.


8.	Subsequent Events

The Company has analyzed its operations subsequent to December 31, 2009
through the date these financial statements were filed with the Securities and
Exchange Commission.

In 2010 and the during the first quarter of 2011, the Company raised $4.4
million and $1.5 million in private placements, respectively, to support the
start of revenue flight operations.

F-26
<PAGE>


SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

Baltia Air Lines, Inc.

Date: April 28, 2011

/s/ Igor Dmitrowsky
By: Igor Dmitrowsky, President, CEO and CFO

Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf
of the registrant and in the capacities and on the dates indicated.

SIGNATURE                     TITLE                          DATE

/s/ Igor Dmitrowsky           Chairman, CEO and CFO          April 28,2011
Igor Dmitrowsky              (Principal Executive Officer
                              and Principal Accounting Officer)

/s/ Walter Kaplinsky          Secretary and Director         April 28,2011
Walter Kaplinsky

/s/ Andris Rukmanis           V.P. Europe and Director       April 28,2011
Andris Rukmanis


Exhibit 31.1

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Igor Dmitrowsky, the Chief Executive Officer and Chief Financial Officer
of Baltia Air Lines, Inc., certify that:

1. I have reviewed this annual report on Form 10-K of Baltia Air Lines, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects
the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over
financial reporting (as defined in Exchange Act Rules  13a-15(f) and
15d-15(f))for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this report
is being prepared;

(b) designed such internal control over financial reporting, or
caused such internal control over financial reporting to be designed
under our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally
accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures,as of the end of
the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the
registrant's most recent fiscal quarter (the registrant's fourth
fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have
disclosed, based on our most recent evaluation of internal control
over financial reporting, to the registrant's auditors and the audit
committee of the registrant's board of directors (or persons
performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the
design or operation of internal control over financial reporting
which are reasonably likely to adversely affect the registrant's
ability to record, process, summarize and report financial
information; and

(b) Any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal control over financial reporting.

Date: April 28, 2011

/s/ Igor Dmitrowsky
Igor Dmitrowsky
Chief Executive Officer and Chief Financial Officer
(principal accounting officer)



EXHIBIT 32.1

BALTIA AIR LINES, INC.
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report Baltia Air Lines, Inc. (the
"Company") on Form 10-K for the period ended December 31, 2009 as
filed with the Securities and Exchange Commission on the date hereof
(the Report), I, Igor Dmitrowsky, Chief Executive Officer and Chief
Financial Officer (principal accounting officer) of the Company,
certify, pursuant to 18 U.S.C. ss.1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) But for the re-audit of the financial statements as reported in Items
8 and 9 of Part Two above, the Report fully complies with the requirements
of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been
provided to Baltia Air Lines, Inc. and will be retained by Baltia Air Lines,
Inc. and furnished to the Securities and Exchange Commission or its staff
upon request.

Date: April 28, 2011

/s/ Igor Dmitrowsky
Igor Dmitrowsky
Chief Executive Officer and Chief Financial Officer
(principal accounting officer)